New Zealand And India Begin FTA Negotiations

by Mary Swire, Tax-News.com, Hong Kong

01 February 2010

New Zealand’s Trade Minister, Tim Groser, and the Indian Commerce Minister, Sri Anand Sharma, have announced the start of negotiations towards a free trade agreement (FTA) between New Zealand and India.

Tim Groser, attending a meeting of World Trade Organisation Trade Ministers in Davos, Switzerland, alongside Sri Anand Sharma, welcomed the Indian Government's confirmation that it will open negotiations with New Zealand.

The New Zealand government approved the start of negotiations in March last year. The relevant Indian government committee approved the proposal only recently - a decision delayed until now by India's mid-year election in 2009.

"I expect negotiations to start soon and am confident we can deliver a high quality agreement with significant benefits to New Zealand exporters," Groser said.

"An FTA with India offers great promise for New Zealand businesses. India is already one of our fastest growing markets, with New Zealand exports having tripled over the last decade,” Groser continued. "Our negotiators will target the currently high barriers facing New Zealand exporters to India so that trade can further flourish."

According to Groser, that increase in New Zealand’s exports to India has been achieved despite the high tariffs on some of New Zealand’s traditional exports, such as agricultural and wood products. If those tariffs can be reduced substantially within the proposed FTA, therefore, New Zealand can expect to garner further benefits from trade with India.

On the other hand, it is said that India may view New Zealand’s membership of the Asia Pacific Economic Community, which it would like to join, as an advantage if an FTA can be concluded.

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